Linklaters was pleased to advise Siam City Cement Public Company Limited (“SCCC”), a leading producer of cement products listed on the Stock Exchange of Thailand, on two significant deals involving acquisitions in Sri Lanka and Vietnam.

SCCC first agreed to acquire Holcim (Lanka) Limited (“Holcim Lanka”), a subsidiary of LafargeHolcim operating in Sri Lanka, for US$373m (consisting of an initial price of US$369m plus estimated interest accruing up to completion). Holcim Lanka operates one integrated plant and one grinding plant and is Sri Lanka’s leading cement manufacturer.  Completion of the acquisition is expected take place on 10 August 2016.

“The acquisition of Holcim Lanka will not only give SCCC, Thailand's second-largest cement maker, the largest share of the cement market in Sri Lanka, it will also allow the company to diversify its revenue sources and have the opportunity to expand in South Asia”, said Hong Kong corporate partner Robert Cleaver.

SCCC subsequently agreed to acquire a 65% stake in Holcim (Vietnam) Limited (“Holcim Vietnam”) from LafargeHolcim for €479m (consisting of an initial price of €460m plus estimated interest accruing up to completion).  Holcim Vietnam operates one integrated plant and four grinding plants in Vietnam with an annual cement capacity of 6.3 million tons. Holcim Vietnam  is also a leading ready-mix concrete producer operating seven plants in Southern Vietnam.  The remaining 35% stake in Holcim Vietnam is held by Vietnam Cement Industry Corporation (“VICEM”).  Completion of the acquisition is subject to certain conditions precedent, including the waiver of a right of first refusal by VICEM and certain Vietnamese regulatory approvals.

“The acquisition of a 65% stake in Holcim Vietnam provides numerous benefits to SCCC, including the expansion of its cash generation into the high growth market of Vietnam, the reduction of SCCC’s dependence on conventional export markets, and the optimisation of its IT systems, procurement and technical knowledge-sharing”, said Bangkok partner Wanwisar Nakarat.

Hong Kong corporate partner Alex Bidlake noted that “The two deals demonstrate Linklaters’ expertise in complex, multi-jurisdictional transactions and the strength of its international team across Asia”.

The deals were led by partners Robert Cleaver and Alex Bidlake in Hong Kong and Wanwisar Nakarat in Bangkok, and managing associates Johanna Leung and Andrew Cohn in Hong Kong.